Illinois Bettors See New Fees as Sportsbooks React to Tax Law

Sports gamblers in Illinois are noticing extra charges and bet minimums this month. Changes that betting companies are making because of the state’s debated per-bet tax are taking effect. The rule was introduced on July 1. It makes sportsbooks pay $0.25s for each of their first 20 million bets every year. After that, they pay $0.50 per bet. State officials think this could bring in about $36 million for Illinois’ budget.

Casual Bettors Hit Hard as Illinois Tax Spurs Industry-Wide Changes

Operators reacted in different ways. This week, bet365 became the last big sportsbook to make changes, adding a $0.25 fee on all bets under $10. Wagers of $10 or more will not get charged, and the fee is given back if the bet is canceled or voided. FanDuel and DraftKings went a step further, adding a $0.50 fee to every bet, no matter the size. Caesars and Fanatics brought in smaller fees, while BetMGM, Hard Rock Bet, and BetRivers chose to raise minimum bets instead of adding direct charges.

Industry groups, like the Sports Betting Alliance, have spoken out against the tax. They say it puts an unfair burden on casual players who often bet small amounts. The group points to data showing that over half of Illinois bets are $5 or less. They caution that higher costs might push bettors to use offshore platforms that are not regulated. These sites offer little protection for consumers and do not pay taxes to the state.

Flutter Entertainment, FanDuel’s parent company, shares these worries. Company spokespeople said they need to charge this fee to keep running in Illinois. But they promised to drop the extra charge if lawmakers change the tax. They also warned that these new costs could make some customers turn to illegal sites with lower prices.

Illinois Gamblers Upset as New Costs Change the Betting Scene

Bettors have voiced their anger online. Some casual gamblers pointed out that the higher fees have made small fun bets too expensive for them, while others said they will gamble in nearby states or on offshore sites instead. A handful of market experts think these responses might shrink the legal market, cutting the tax money the state wanted to boost.

Even with all the complaints, Illinois is still one of the biggest sports betting markets in the US, and companies will not leave the state. As the football season picks up speed, the impact of Illinois’ tax change will become more obvious. Right now, both sportsbooks and gamblers are getting used to a pricier betting landscape, while many keep an eye out to see if politicians take another look at the policy as criticism grows.